Good News: Now You can apply for Loan against LIC Policy online. Earlier we used to apply for loan offline by contacting the agent for understanding eligibility and details and paying a visit to your branch.
Now LIC has simplified the online process by making these methods easy and online, under which you can fill your loan application online. Not only loan, you can also pay Loan Repayment/ Loan Interest Payment online.
Before giving more information about this, let me tell you about loan features given on LIC policy.
Features of Loan Received under LIC Policy
- The amount of loan you can get is up to 90% of the surrender value.
- All types of LIC policies are not liable for the loan as (Term Life Insurance), it is very important for you to check your loan eligibility.
- You need to pay interest every half year.
- Loan would be given for minimum 6 months period.
- You can repay the loan principal with interest or just if you want to pay interest. If you want to pay only the interest on the loan, then the principal amount of the loan is reduced by the amount of your claim.
- To take the loan on LIC policy, you have to complete at least 3 years of the premium paying term. which means you can only get loan on 3 years + old policies.
- You will have to keep LIC’s policy as a security. LIC keeps all your original documents under their custody.
- If you fail to deposit the interest within 30 days from the last day of payment, then LIC forcibly closes your policy and recovers the loan amount.
- You can also take a second loan on your same LIC policy, whether your past interest is fully deposited or not. However, the amount given to you will be equal to ninety percent of the surrender value by adding two amounts.
- You can take the loan from other banks also on LIC policy but it will not be beneficial for you and other banks can charge you more interest.
Loan Against LIC Policy Online application process
As I told you earlier, LIC has now made the online process for all its loans and its payment.
The way to apply for the loan and pay online applications is like this.
- You have to go to the LIC’s home page and press the online loan button which is present in the online services tab or you can click here to go directly at : https://www.licindia.in/home/policyloanoptions
- As soon as you click on the online loan, you are redirected to another page. Two types of options are available on that new page, for an instalment payment and for applying for a new loan.
- There you have to register yourself, in which you are given your login ID. If you already registered just login.
- At the end, you will be able to register yourself after filling up all the types of options given to you to register yourself.
Benefits of taking a loan against LIC policy.
- The first thing is that you get a loan immediately in the time of your emergency on LIC policy.
- Now as I said that the process has become online, applying it has become very easy.
- Interest rates under this are less compared to other personal loans.
- Lots of flexibility has been given to repay the loan, which is not given in the other personal loan.
- Here you only have to give your policy document as proof, if you are taking personal loans from any other place, then you have to go through many eligibility processes.
The disadvantage of taking the loan against LIC policy.
- The amount of money you get as a loan is very limited as your surrender value will be. If you want more money than you cannot get that much loan amount on the LIC policy.
- You do not get any tax benefits.
- In the event of your tragic death, the values of your insurance are greatly reduced. Because the loan is still outstanding and the amount that your nominee receives benefits is reduced.
As far as LIC’s traditional plans do not have much advantage as the increment of money is not as much. But yes, it can be beneficial in the emergency for anyone who needs a loan urgently and it can also be helpful for those who need a personal loan.
Jeevan Shree 1 Table No.162 is an Endowment assurance plan. Jeevan Shree-I is offering the choice of many convenient premium paying terms. It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term. Jeevan Shree-I is suitable for high worth individuals i.e Corporate Executives, Professionals, Software Engineers, Industrialists, Consultants, Estate owners, Builders, NRIs, Models, Film stars, etc.
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the premium paying term or till earlier death. Alternatively premium may be paid in one lump sum (Single premium).
Jeevan Shree 1 comes with Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Basic Sum Assured at the time of claim.
The policy participates in the profits of corporations business from the 6th year onwards. Jeevan Shree-I will get a share of the profits in the form of bonuses. Also, a Simple Revisionary Bonuses will be declared per thousand Basic Sum Assured annually at the end of each financial year. Bonuses once declared, they will form part of the guaranteed benefits of the plan and it will be included on maturity.
The Sum Assured alongwith guaranteed additions and reversionary bonuses, if any is payable in a lump sum on survival to the end of the policy term.
Sum Assured plus Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for first five years of the policy.
And Death after first 5 years, S.A. + vested G.A. of Rs.50/- per 1000 S.A. per year for the first 5 years + accrued Reversionary Bonuses declared from 6th year onwards.
Accident benefit is available under Jeevan Shree-I upto a maximum of Rs.25 lakhs (inclusive of all other life insurance plan) An additional amount equal to the accident benefit sum assured is payable on death. In case of total and permanent disability arising due to accident (within 180 days) this amount is paid over a period of 10 years in monthly installment.
Buying a life insurance policy is a long-term commitment. However, surrender value is available on the plan on earlier termination of the contract. The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra premium
Jeevan Shree 1 Eligibility Conditions and Restrictions:
- Minimum age at entry: 18 years completed
- Maximum age at entry: 65 years
- Maximum maturity age: 75 years
- Minimum Term: 5 years
- Maximum Term: 25 years
- Minimum Sum Assured: Rs.5,00,000/-
- Maximum Sum Assured: No Limit
- Sum Assured should be in multiples of Rs.1,00,000/-
- Accident Benefit per 1000/- S.A.: Allowed (With extra Premium)
- Loan Available: Yes
Jeevan Shree -I is eligible for rebates depending on the mode of premium payment chosen and the extent of cover.
The yearly premium payment option entitles the policyholder to a 2 per cent rebate on premiums; a sum assured of Rs 50 lakh entitles the insuree a Rs 0.50 per thousand sum assured rebate.
15-Days Cooling-Off Period:
If you are not satisfied with this policy, you have an option to return the policy within 15 days.
The policyholder can revive his lapsed policy within 5 years from the date of first unpaid premium by paying arrears of premium together with interest to be decided by corporation from time to time subject to satisfactory evidence of health.
Update: Jeevan Shree 1 Plan No. 162 Has Been Discontinued.
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.
Check LIC Policy Status: If you have a policy, you might want to check your LIC policy status, due premium, loan on policy and so on. The good news is that now, you can check all the information on your mobile phone by SMS. This is free service but your mobile operator may charge per short code sms as per your tariff plan. SMS inquiry will give the required information in seconds on your mobile phone.
Check LIC Policy Status by SMS
Here are the Pension Policy shortcodes for your reference:
LICPension <Policy-No>[STAT/ECDUE/ANNPD/PDTHRU/AMOUNT/CHQRET] and Send it To 56677
If you want to check your Individual Pension policy (IPP) status then you need to type LICPension 88888888 STAT and send it to 56677 (88888888 is just an example, you need to replace with your LIC policy number.
Full form of above terms are:
- IPP Policy Status, (STAT)
- Existence Certificate Due, (ECDUE)
- Last Annuity Released Date, (ANNPD)
- Annuity Payment thru (CHQ/ECS/NEFT) (PDTHRU)
- Annuity Amount (AMOUNT)
- Cheque Return Information (CHQRET)
If you want to check Individual policy details through SMS then Type:
ASKLIC < POLICY NO > [PREMIUM/REVIVAL/BONUS/LOAN/NOM] and Send it To 56677
You can get following details through SMS:
- Premium – Installment premium under policy
- Revival – If policy is lapsed, Revival amount payable
- Bonus – Amount of Bonus vested
- Loan – Amount available as Loan
- NOM – Details of Nomination
Alternatively, you can call LIC customer care no. 1251 form MTNL/BSNL or login to LIC website to check LIC policy details online. Apart from these, if you have smartphone you can download the App and check the status anytime anywhere at your convenient time. There are various other ways you to check the status. For example if you have a dedicated agent, you can contact your agent and enquire about it. Or you may pay a visit to your nearest branch and inquire.
What is ULIP Insurance? How it works?
ULIP is a part linked with insurance plan. In other words ULIP is an Insurance + Investment plan. ULIPs fall in the category where they are more goal oriented and give priority towards the safety of insurance protection. This plan enables you to secure protection for your family in the event of your untimely death and at the same time provides you an opportunity to earn a return on your premium paid. In this type of investment a part of the investment is used for providing you life cover. As this insurance is combined is somewhere linked with investment, therefore the funds which are saved in turn are used in stocks or bonds, hence the value of the investment keep varying as per the investment chosen by you. In Simple words, ULIPs are structured in such a form that they can be managed according to the specific needs of the consumers and the protection received is an added benefit. In this way the ULIPs offer flexibility to their customers.
There are certain important points to be taken into consideration before we opt for ULIP plans.
- Firstly, we should be aware about all the charges ie. allocation charges, mortality charges etc.
- Secondly, person can get a tax rebate of a maximum of Rs 100000 when invested in ULIP plans.
- Third point is what are the locking period and other fine prints like surrender charges before the maturity.
As now we know what exactly is an ULIP plan, now the next question normally pops out in our minds is how does this plan works out? No plan is easy to understand, so in the same way even it is critical to know the working of ULIP plan and how our money gets invested. ULIPs basically work like a mutual fund with a life cover involved in it. The premium is invested by them in the investments like mutual funds, bonds, stock markets. When the amount of the premium is decided the insurer firstly deducts some portion of the ULIP premium and then the rest of the premium is invested in the funds. The next step involves deduction of the mortality charges by the administration. The charges are deducted as per the type chosen by us. It may be on monthly basis or sometimes daily basis. As the fund invested by us in the ULIP plan as an underlying value, the fund value provides us the value of the asset. And as the plan gets matured, we are entitled to receive the amount of out fund as per its face value.
The points must be considered and the proper knowledge of the ULIP plan is a must. If all these factors are viewed, this policy is very beneficial in the future.
If you want to buy LIC ULIP policy then visit : http://www.mylicindia.com/ulip-plans/
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Life insurance policies should be as simple as Jeevan saral Table No. 165. It gives you 250 times risk cover on your monthly premium.
Jeevan saral Features
- Higher cover
- Smooth return
- Liquidity fund
- Considerable flexibility
Under this plan death cover will be same irrespective of age at entry and term. The sum payable at maturity however differs for different entry ages and terms. This plan is very appropriate for employees seeking life cover through Salary Saving Schemes (SSS).
==> On Death:
- 250 times the monthly premium, plus
- return of premiums excluding extra/rider premium and first year
- premium plus
- The loyalty addition, if any.
==> On Maturity:
- Maturity sum assured, plus
- Loyalty additions, if any.
The policy can be surrendered after it has been in force for at least 3 full years. The surrender value will be greater of Guaranteed Surrender Value or Special Surrender Value.
Jeevan Saral offers following optional riders by payment of additional premium:
- Accidental death and disability benefit
- Term Assurance benefit.
The maximum cover for the above riders will be Rs.25 lakhs under all policies of the Corporation taken together.
The plan offers Auto Cover of 12 months after the policy has been in force for a period of 3 years and more.
The policyholder can choose a maximum term but can surrender at any time without any surrender penalty or loss.
The plan will allow partial surrender from 4th year onwards subject to certain conditions. Due to existence of the flexible term and partial surrenders the policyholder will enjoy a lot of liquidity under Jeevan saral.
Loan is permissible under the policy.
Only loyalty additions will be declared under the plan. The minimum term after which a policy can earn loyalty addition will be 10 years. However, loyalty additions will also be payable if death occurs in the 10 year of the policy provided that the policy is in force at the time of death. Loyalty additions will be subject to Corporations experience, and may be paid in case of death, maturity and surrenders.
Eligibility conditions for LIC Jeevan Saral:
Age at entry: Minimum 12 years completed and maximum 60 years nearest birthday.
Age at maturity: Maximum 70 years.
Term: All terms from 10-35 years.
Premium: Minimum Rs.250/- per month for entry upto 49 years and
Rs.400/- per month for entry age 50 years and above. The premium
shall be in multiple of Rs.50 per month.
Mode: Yearly/ Half yearly/ Quarterly and Monthly under Salary Saving Scheme.
LIC Jeevan saral is most selling and recommended plan by LIC agents due to its simplicity and features. This is also called as ATM plan as you can withdraw partial money from your Jeevan Saral account after completing 10 policy year.
This Plan has been Discontinued.